G-P’s employer of record (EOR) model allows your company to start hiring talent in minutes via our global entity infrastructure. Unlike a Professional Employer Organization (PEO), G-P allows your company to expand your global footprint without the hassle of entity setup and management.
Our global employment products, including G-P Meridian Prime™ and G-P Meridian Core™, are backed by the largest team of HR and legal experts in the industry. We handle the growing complexities of compliant global expansion — so you can focus on opportunities ahead.
As a global EOR expert, we manage payroll, employment contract best practices, statutory and market norm benefits, employee expenses, as well as severance and termination.
You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in 180+ countries around the world, quickly and easily.
Hiring in Argentina
Due to Argentina’s fluctuating inflation rates, employees may request to be paid in U.S. dollars or any other international currency via direct wire to their bank account. However, it is important to note that paying employees in an international currency has restrictions and is subject to certain requirements in Argentina.
It is worth noting that Argentina ranks 126th on the World Bank’s Ease of Doing Business list due to a complicated web of taxes, tax credits, subsidies, prohibitions, exemptions, and delays in doing business. Companies that leverage G-P’s Global Growth Platform™ avoid having to set up a subsidiary or a branch office in a very difficult country in which to do business.
Employment contracts in Argentina
The general rule in Argentina is that employment contracts are executed for an indefinite period of time. Indefinite-term contracts do not need to be executed in writing. However, it is good practice to have the written formality for defining the terms of the contract in place. Fixed-term, temporary, and telework employment contracts must always be executed in writing and comply with certain mandatory requirements. If the requirements are not met, fixed-term and temporary employment contracts will be deemed as a contract for an indefinite term. Employers must immediately register any and all employment relationships in a Special Payroll Book, which is subject to periodic control and supervision by the Ministry of Labor. Also, employers whose employees are working under a telework modality must be enrolled in a Telework registration before the Ministry of Labor, to report all teleworkers.
Working hours in Argentina
- The standard workweek in Argentina is 8 hours per day or 48 hours per week during a daytime shift. For night work between 9 p.m. and 6 a.m., working hours cannot exceed of 7 hours per day.
- Employees must have at least a 12-hour rest break between working days/work shifts.
- Overtime must not exceed 30 hours a month and 200 hours a year, unless authorized by the relevant labor authorities.
- Overtime hours must be paid at a rate of 50% on top of normal salary, unless overtime is worked during the weekly rest period or on a public holiday, in which case the relevant pay rate is 100% on top of normal salary.
Holidays in Argentina
Argentina celebrates 15 public holidays for which employees are given the day off, including:
- New Year’s Day
- Carnival — Monday and Tuesday
- Truth and Justice Memorial Day
- Day of the Veterans (Malvinas Day)
- Good Friday
- Labor Day
- May Revolution Day
- General Martin Miguel de Guemes Day
- National Flag Day (Manuel Belgrano Day)
- Independence Day
- San Martin Day
- Day of Respect for Cultural Diversity
- National Sovereignty Day
- Immaculate Conception Day
- Christmas Day
Additionally, Christmas Eve is also commonly observed.
If any of the movable public holidays fall on a Tuesday or Wednesday, the holiday is the preceding Monday. If it falls on a Thursday, Friday, Saturday, or Sunday, then the holiday is the following Monday. If the date of a non-movable holiday falls on Tuesday or Thursday, an extra holiday is added on the previous Monday or the following Friday, respectively.
Vacation days in Argentina
Employees who have worked for an employer for more than 6 months are entitled to 14 days annual leave. The amount of holiday entitlement increases with the length of continuous employment, up to a maximum of 35 days.
The minimum and continued period of paid annual vacations employees are entitled to are:
- 14 calendar days when seniority does not exceed 5 years.
- 21 calendar days when seniority is between 5 and 10 years.
- 28 calendar days when seniority is between 10 and 20 years.
- 35 days when seniority exceeds 20 years.
Employers may freely extend the vacations of their employees. Employers must pay salary and other benefits to the employee during annual leave. This payment is calculated by dividing the salary by 25 and then multiplying it by the number of days’ holiday to which the employee is entitled. Payment must be made in advance, and leave must begin on a Monday.
Argentina sick leave
If the employee has an illness or accident that is not work-related, they are entitled to:
- Up to 3 months’ paid leave if they have worked for an employer for less than 5 continuous years.
- Up to 6 months’ paid leave if they have worked for an employer for more than 5 continuous years.
If the accident, injury, or illness is related to work performed for the employer, treatment costs, rehabilitation, and sick pay are covered for up to 12 months by compulsory employment risk insurance.
Parental leave in Argentina
Pregnant employees are entitled to a special leave of absence of 90 days’ paid leave, which is generally taken as 45 days before and 45 days after childbirth. During maternity leave, employees are entitled to certain family allowances and other fringe benefits.
Paternity leave provides spouses 2 days of paid leave after the birth of a child.
Home office allowance in Argentina
Local law requires employers to cover expenses related to home office setup and/or equipment for those employees who work 100% remotely. This can be paid either as an allowance or as an expense reimbursement. If you choose to pay a fixed allowance, G-P recommends a minimum of ARS 6,000 per month, which should be reviewed and increased in case of outstanding inflation fluctuation rates.
Health insurance in Argentina
The mandatory health insurance provided to employees via private companies in Argentina, arranged by labor unions, covers what is established by the PMO (Compulsory Medicare Program).
Employers contribute 6% and employees contribute 3% on top of the employee’s base salary. The PMO covers:
- Pregnancy and child plans, oncology, primary assistance in emergencies, dental plans, rehab programs, medication, prostheses, HIV treatment, and drug addiction.
- Secondary assistance, including medical appointments, medical exams, surgeries, hospitalization, and therapies.
- Several other healthcare offerings, including but not limited to dermatology, radiology, pediatrics, and psychiatry.
Argentina supplementary benefits
Employees also receive paid leave under the following circumstances:
- Marriage: 10 days’ leave
- Death of a child, parent, or spouse: 3 days’ leave
- Death of a sibling: 1 day’s leave
Meal tickets, although optional, are a common benefit provided to employees in Argentina. Employers fully pay this benefit monthly together with the monthly salary. The amount paid varies depending on the employee’s occupation, but it usually does not exceed 1/6 of the monthly salary.
Bonuses
Local law provides that employees are entitled to receive, on top of their salaries for each calendar year, an additional monthly salary. This 13th-month salary is also known as Aguinaldo. It is payable in 2 semiannual installments, which are due prior to June 30th and December 18th. Each installment amount equals 50% of the highest monthly wage received during the previous 6-month period.
Termination and severance in Argentina
In the case of termination without cause, employers must give appropriate written notice to employees who have worked for more than 3 months. During this period, the employee earns their normal salary. The exact prior notice period depends on the employee’s status:
- Contract and probationary period employees: 15 days’ prior notice
- Employees, after probationary period, with up to 5 years of service: 1 month’s notice
- Employees with more than 5 years of service: 2 months’ notice
If the employee makes a successful claim that the dismissal is unfair, the employee is entitled to either a severance payment or reinstatement. They can claim a 50% increase on the severance payment they would have received in a termination without cause.
Employers are required to make severance payments to the employee based on the employee’s highest ordinary monthly salary earned during the previous year of employment or full term of service, if shorter than 1 year.
- With certain limits, employers must pay the employee 1 month’s salary for each year of employment or period worked in excess of 3 months for which the employee worked for such employer.
- In any event, the severance payment cannot be lower than the ordinary highest monthly salary.
- If an employee is dismissed for gross misconduct, no severance payment or prior notice is required; however, the burden of proof lies with the employer to show that gross misconduct occurred.
When an employer has just cause to terminate an employee, they do not need to provide notice. A severance payment is also not required for terminations with just cause.
Employees may resign at any time and should give the employer 15 days’ prior notice. However, this is not mandatory.
- For indefinite-term contracts, the probationary period should be stated in the contract. A probation period of up to 3 months in permitted. During the probationary period, either party may terminate the employment relationship at any time without the employer having an obligation to make a severance payment.
- For indefinite-term employment contracts, employers may dismiss an employee at any time upon giving the employee:
- Prior notice of 15 days (if the employment contract is terminated during the probationary period).
- 1 month (if the period of service is greater than the probationary period but up to than 5 years).
- 2 months (if the period of service is greater than 5 years).
- This notice can be substituted with a salary payment equivalent to the period of prior notice.
Paying taxes in Argentina
Employers and employees pay into social security in Argentina.
Employers must make contributions to the Pension Fund System, Medicare Coverage, Life Insurance, and Labor Risk insurance for their employees. The rates are as follows:
- Pension fund: 17%
- Medical care coverage: 6%
- Life Insurance: 0.50%
- Labor Insurance: 2.41%
Employees are required to make the following contributions:
- Pension fund: 11%, with a maximum of ARS 28,000.65
- Medical care coverage: 3%, with a maximum of ARS 28,000.65
- Social services: 3%, with a maximum of ARS 28,000.65
There is no insurance against long-term disability in Argentina. If employees have a percentage of disability higher than 66%, they receive a disability certificate, will be obligatorily retired, and receive a pension from the government. The value of the pension varies case by case.
In Argentina, employers contribute 4.44% or 5.56% of gross payroll, according to the type of enterprise, on top of the base salary for Family Allowances.
- Family Allowances cover the birth of a child, disabled child, prenatal care, adoption, and marriage at the discretion of the employee.
- The payment is made monthly or by a lump sum payment, depending on the allowance required.
Why G-P?
At G-P, we help companies unlock the power of the everywhere workforce through our industry-leading Global Growth Platform™. Let us handle the complex and costly tasks involved in finding, hiring, onboarding, and paying your team members, anywhere in the world, with the speed and guaranteed global compliance your business needs.
Contact us today to learn more.